``As of now, the Marlboro brand is not coming to India. What is the point of bringing in another another multinational brand when those already present in the market are not selling,''reasons Ram Poddar, chief executive of Godfrey Phillips India Limited (GPIL), the joint venture partner of Philip Morris in India. Confirming this, Philip Morris general manager, India, Ajit Sahgal told The Financial Express, ``The entry of our international brands in any country depends on commercial considerations.''

Marlboro was to have joined the elite club of Benson & Hedges and 555, the multinational brands from rival BAT's stable, produced in India locally by joint venture partner ITC Limited. However, the depressed state of the domestic cigarette market has led to Philip Morris postponing its plans.

Cigarette sales have dropped by 5-7 per cent so far this fiscal as compared to last year. The year is expected to end with 4-5 per cent lower sales.Incidentally, an increase in prices effected by companies post-budget, which has helped shore-up bottomlines of cigarette companies, is cited by industry sources as the biggest factor responsible for the drop in sales.

When prices of cigarettes go up in India, industry observes say, the consumer shifts back to cheaper alternatives of tobacco consumption, such as bidis and gutka.

"The domestic market is down, cigarette sales have dropped by 5-7 per cent this fiscal compared to last year. In such a scenario, who can introduce a high priced brand?'' asks Poddar.

Multinational brands are priced at Rs 53-55 per pack, much higher than the average price of Rs 17-21 per pack that an Indian smoker pays for a middle-segment local brand.

Those who prefer international brands despite the price factor, have easy access to the brands, which further affects sales. According to ITC estimates, contraband cigarettes are outselling locally-made international brands by four to seven times.

ITC has calculated that for every one Indian-manufactured pack of 555 in India, there are seven smuggled packs available in the market. Similarly, the ratio for 555 is 1:4.

With smuggling of cigarettes into the country made easy by the porous borders with Nepal and Bangladesh, the scenario for multinational brands in India will remain an unpromising one, maintain industry sources.